USD/JPY plots defensive range path to target 101.20
· As we expected, a more defensive tone over the past 24 hours, but we did not expect the extent of the erosion suffered Thursday.
· The small Wednesday top through 102.65 encouraged a setback, and produced a plunge through range supports at 102.25/20 and 101.75.
· Although we see a range defined between 103.70 and 101.20, the threat through mid-March is for a more bearish shift through the lower.
· WHAT CHANGES THIS?
· Downside: Below 101.20 re-energizes bear risks through 100.75/60 for the 200-DMA, 100.28.
· Upside: Above 103.70 signals a bull shift for 104.85/90 maybe 105.35/45 highs.
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